nescafe _ group 5

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11/17/2011

Abhishek Kumar 010/47

Ankit Kumar 036/47

Navin Yadav 172/47

Vikrant Kamble 339/47

Vivek Kumar 347/47

Arpit Verma 405/17

Avinash Chandra Kishan 406/17

Deepak Patney 408/17

GROUP 5 Integrated Marketing Communication for Nescafe

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ACKNOWLEDGEMENT

We owe a great many thanks to a great many people

who helped and supported us during the writing of this

project.

Our deepest thanks to Lecturer, Prof. D. P . Ghosh, the

Guide of the project for guiding and correcting various

documents with attention and care. He has taken pain to

go through the project and make necessary correction as

and when needed.

We express my thanks to our group mates, for extending

their timely support.

Our deep sense of gratitude to the peers for their support

in data validation.

We would also thank our Institution and our faculty

members without whom this project would have been a

distant reality. We also extend our heartfelt thanks to

our well wishers.

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Industry Analysis:

Steady Volume Growth for Hot Drinks in India

Hot drinks in India recorded a low single-digit growth rate in total volume sales in 2010. Though

growth rates for “other hot drinks” and coffee were higher, the dominance of tea in hot drink sales

served to restrict growth. Certain categories in hot drinks saw exceptional growth, either due to a

health and wellness positioning or convenience of preparation. Off-trade value sales of hot drinks

saw double-digit growth in 2010, highlighting the significant increase in average unit prices.

Unit Prices Escalate Significantly

On the back of consistently increasing commodity prices, hot drinks experienced substantial growth

in off-trade unit prices in 2010. The percentage rise in off-trade unit prices for tea reached low

double digits, as tea manufacturers passed on at least some of the increased costs deriving from the

significant increases in raw material costs. However, major players such as Hindustan Unilever and

Tata Global Beverages chose to absorb much of the increase in input costs in their quest to maintain

volume sales. Several local small players were forced to shut down due to the continuously

increasing input costs over the review period.

Multinational Players Dominate Hot Drinks

Hindustan Unilever, GlaxoSmithKline Consumer Healthcare and Tata Global Beverages together

accounted for more than half of off-trade value sales of hot drinks in 2010. Horlicks retained its

status as the number one hot drinks brand in terms of off-trade value sales, followed by Tata Tea

and Brooke Bond. Innovative product launches by the leading players kept them abreast of changing

consumer preferences, and in some cases even opened up new consumer segments. Both Hindustan

Unilever and GlaxoSmithKline Consumer Healthcare attempted to expand their rural presence by

launching Brooke Bond Sehatmand and Horlicks Asha, respectively.

Kirana Stores Continue To Dominate Retail Sales

Independent small grocers, or kirana stores, accounted for two thirds of off-trade volume sales in

2010. With no significant dip in popularity among consumers, such stores managed to retain the

confidence of all national hot drink manufacturers in selling their respective products. The

traditional appeal of kirana stores reflects that of the most popular hot drink category: black tea.

Though supermarkets/hypermarkets experienced a marginal rise in their share of off-trade volume

sales, they are still far off from competing with kirana stores as the primary retail channel. Declines

in share were experienced by forecourt retailers and convenience stores.

Forecast Period to See Higher Volume Growth

Total volume sales of hot drinks are expected to see a marginally higher CAGR in the forecast period

than that seen in the review period. Exploration of rural consumers as a major target segment will

contribute to this rise.

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The relatively mature tea category will be driven by premium products which offer additional health

benefits, while coffee will increasingly move towards the more expensive but convenient instant

coffee format. On-trade sales through specialist outlets – coffee shops for coffee, and the slowly

upcoming tea lounges for tea – will popularise these beverages further. Other hot drinks will see

continuous growth as parents, especially in urban households, look for the best nutritional benefits

for their children. The inclusion of adults in the age group targeted by other hot drinks also provides

manufacturers with a tool to bolster growth in the forecast period.

Competitive Landscape:

• The two primary coffee brands on a national scale are Bru by Hindustan Unilever and Nescafe by

Nestlé India. Bru Roast & Ground captured 25% of off-trade volume sales of fresh coffee in 2010. In

the absence of any substantial national competition in fresh coffee, it is likely to hold onto its

position as the leader, and possibly increase its share. There are many regional players in fresh

ground coffee, mostly concentrated in South India. Instant standard coffee, priced at three to four

times the unit price of fresh ground coffee, was led by Nestlé in terms of volume sales in 2010.

Nescafe Classic and Sunrise together accounted for around 53% of instant standard coffee volumes

in 2010, with Bru accounting for another 40%.

• Nestlé India and Hindustan Unilever both experienced an upward trend in off-trade coffee value

sales in 2010. Rises in unit prices were, however, the major driver of revenue growth, with Bru

instant coffee seeing 17% value growth in 2010. Growth was also assisted by a strong increase in

instant standard coffee volumes in 2010. Mr Bean (under the Tata Coffee umbrella) on the other

hand, recorded a 36% value sales. This was due to a lack of advertising by the company, which is

looking to focus its attention on the plantation and coffee growing / supplies business in the near

future as opposed to final consumer coffee product. Conversely, Coffee Day saw a notable rise in

retail value sales of 22% in 2010. Fresh & Honest Cafe has launched some 100% fresh ground coffee

brands from the portfolio of the international coffee player Lavazza, but has yet to establish a

significant brand presence in India.

• The international players Nestlé India and Hindustan Unilever maintained their strong presence in

Indian branded coffee in 2010. Some domestic coffee players, like Narasu’s Coffee, Amalgamated

Bean Coffee Trading Co Ltd (ABCTCL) and Tata Coffee, are present in the fresh ground coffee

category, but are still far from threatening the share of Bru Roast & Ground. A notable feature of the

Indian coffee category is the continued popularity of coffee-chicory mix formats in both instant and

fresh ground coffee, due to the lower prices of these products. The largest brand in off-trade value

sales terms in 2010, Nescafe Sunrise, is in this format.

• There were few new product launches in 2010, with Nestlé India and Hindustan Unilever Ltd

concentrating on building their existing brands. Both Nescafe and Bru have recently launched new

advertising campaigns focusing on the Indian youth and the possible use of coffee in the context of

socialising. Both of these companies have used film and television stars to establish brand equity.

The eagerness of these leading brands to connect with young people is indicative of the importance

of the young working population as a target market in India.

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• Instant coffee packaging is changing in India. Previously, the main packaging types used were

pouches and PET bottles. However, Aveon Premium and Royale Coffee are packed in glass jars to

give a premium and classy look. Illy Coffee Ground Roasted Powder is, meanwhile, packed in an

expensive looking metal tin.

• India has a few premium coffee brands, such as Illy and Lavazza. However, coffee is highly

dominated by standard priced brands, such as Bru and Nescafe, along with some low-priced fresh

coffee brands, concentrated in South India. Aditya Birla Retail and Reliance Home have ventured into

private label coffee, but such products are a rarity in coffee in India. Most plantations sell their

produce to major coffee producers, such as Hindustan Unilever and Nestlé, which process, pack and

market the products. The high investment and continuous innovation required in coffee discourage

new entrants from entering the category.

Background

The history of coffee in India dates back to the 17th century, when a pilgrim to Mecca smuggled

coffee beans to India which later went on to become the first coffee plantation in India. But it was

only during the British rule of 1840s that coffee became an important export item. Today, coffee

industry of India is the 6th largest coffee producer of the world, accounting over 4% of the total

world coffee production. There are over 170,000 coffee farms in India, cultivating nearly 900,000

acres of coffee trees. Most coffee production is concentrated in the states of Karnataka, Tamil Nadu

& Kerala.

Consumption of coffee in India as a hot beverage is not a new trend. According to an estimate [1],

only 35% of the total coffee produced in India is exported to other markets and the rest is consumed

by the local market. Traditionally, Southern India (Tamil Nadu, Karnataka, Andhra Pradesh, & Kerala)

has been the dominant consumer of coffee, about 78% of the total coffee consumption in India [2].

Although a big chunk, South India prefers filter coffee over instant coffee, while the other three

zones prefer the later over the filter coffee.

The background provided a great platform for NESCAFÉ, a brand of Nestlé, which entered the Indian

market in 1963. As of today, NESCAFÉ enjoys a market share of 55% in the Indian coffee industry [3].

Consumer Analysis

According to the Indian Coffee board, the domestic consumption of coffee is rising at a rate of 5-6%

annually, partly due to the introduction of coffee café culture and the widespread acceptance of

coffee as a hot beverage options in the non-traditional markets of the North, East & West. According

to a report published [4] by the board, over 73% of consumption comes from the Urban areas & 27%

from Rural areas in the South.

The coffee consumers are segmented based on the consumption rate: non-drinkers, occasional

drinkers, and regular drinkers. While the cluster of regular drinkers is mostly concentrated in the

Urban cities, mostly in South India, the consumption level has increased significantly, at a rate of

around 13% across other regions [5].

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The primary target segment of Nescafé is the Young urban working population, in the age group of

18-39 years, which is 59% of the total urban population [6] and cumulatively contributes around 51%

of national income. Among the target segment, the penetration of tea is about 90% and that of

coffee is only about 46% according to the Euromonitor report [5]. According to a study conducted

by MTV India Insights Studio, the wallet share of coffee is only about 7% in males and 5% in females [7]. Though the most common sales channel is the hypermarket & modern retail channels.

The structure we have chosen for this report is that we have chosen 3 unique and different brand

variants under nescafe’s umbrella, namely

• Nescafe Classic

• Nescafe Cappucino

• Nescafe Ice Tea(NesTea)

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NESCAFE CLASSIC

Channels used:

TVC, Print Media

Other advertising channels: Product placement in movies, soaps etc. Sampling

TVC

TVC 1: One of the very first commercials of Nescafe classic in India. The TVC hits on every front very

clearly regarding the target segment.

Message: Throughout the advertisement it can be seen that the characters in the ad are sipping

coffee at the start of a day or work, which caters to the most common usage space of coffee in India,

at the morning. The advertisement starts with a recording studio starting the recording with a sip of

coffee, a book store being opened with a coffee, an employee rushing through the traffic, a

photographer clicking pictures, a painter etc. In the background a tone keeps on playing constantly,

“I just need, need to get started and I will be on my way”, symbolizing the start of the day.

Nescafe has a very peculiar tune “Pa PaRaPa Pa Ra Ra”, many brands use such strategies to market

their brand. For example Kingfisher’s “Oo la la la oo le lo” or Brittania. The idea is to make the tone

so catchy that people hum it unconsciously, or in the very recent, use it as ringtones, marketing the

brand to others without knowing. Also the brand recall becomes high as the person is able to

recognize the brand just by the tune used in the ad.

Target Segment: The advertisement clearly features the following characters.

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1. A composer

2. A book store owner

3. A corporate rushing for a meeting

4. A girl waking up to a coffee

5. A photographer

6. A Painter

Thus it clearly defines its target segment as the urban youth.

Why urban youth?

a. The rural class is still in a habit of tea drinking, there are a very few coffee drinkers in the

northern part of India. There is a huge market in the rural south India, but most of them

prefer filtered coffee or local made coffees.

b. The idea was to capture the market in the urban India and inculcating coffee drinking as a

habit in the daily lives of a mobile urban youth.

Positioning: “Morning drink for the spirited soul”, the ad very clearly depicts the usage and the time

of usage for the product. And very successfully was able to do so. One very noticeable thing about

the ad is that most of the jingle in the background is in English, thus ruling out the rural sector

consumers totally.

Slogan: “100% Pure”, an age-old tactic of claiming that their product is pure or safe. This is done

normally to remove any shadow of doubt from the minds of the consumer when they go to purchase

coffee from a local kirana store.

TVC 2: A slight change in the positioning from the previous advertisement. Nescafe released three

slightly different advertisements following the same theme. We have analyzed only one of them.

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Message: After the successful campaign of inculcating the use of Nescafe as a daily schedule. They

tried to appeal to a different side of the consumer, rather than more of a rational appeal which was

visible in the previous advertisement it was more of an emotional connect. To break free from the

clutter of the daily camaraderie and enjoy in the moment. The advertisement shows a couple

enjoying the moment in the rain, a group of friends chatting while enjoying coffee. Thus successful in

communicating the correct use of the product, “To break free..and enjoy the moment”, like a person

does when he drinks coffee by taking a break during his office hours.

Even the background score says, “Come alive to great moments”, emphasizing our previous

viewpoint that this advert was positioned to appeal to the emotional consumer.

Target Segment: The target segment remains the same, “Urban youth”. The characters portrayed in

the advertisement. A couple, and a group of friends both of them falling under the youth segment.

Positioning: “beverage for any moment”, this advertisement can also be seen as a persuasion to

increase the usage of the product. Since the market usage as a morning beverage might have

become stagnant, they tried to position it in the moments of a day.

Slogan: “Coffee at its best”, they do not let go of the 100% pure coffee slogan as the slogan is shown

in the TVC in the middle of the advertisement.

Reference: http://www.youtube.com/watch?v=kmMsyvPiyf4

http://www.nestle.in/images/tvchtm/nescafe3.htm

Other information: “Prime Focus has post produced this Nescafé ad for India, which shows a young

couple waking up in the morning, the man waking his lady love with the aroma of fresh coffee.

Miten Udeshi, who worked on the telecine of the commercial, graded the ad to keep its 'coffee' tone

throughout the film. The same look is kept across all Nescafé commercials, keeping the ad's brand

recall value high.”

Taken from the website of McCann Erickson, the agency which produced this ad

http://www.primefocusworld.com/work/portfolio/nescaf-classic-mccann-erickson

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TVC-3: This advertisement is a continuation of the TVC-2 described in this report, as it follows the

same background score throughout.

Message: If the market is stagnant there are three ways in which you can increase your sales.

1. Increase usage of the product amongst the current users

2. Convert non users to users

3. Convert the competitor’s consumers to your own consumer

Nescafe achieved the first step with TVC -2; the second step was achieved by this advert.

Who were the non users?

1. People belonging to lower half of the pyramid who cannot afford a Nescafe pack of 250 gm.

2. People who are not willing to purchase a 250 gm bottle to try out Nescafe as a product.

This objective of this advertisement was to generate awareness about a 1 rupee sachet of Nescafe

being available.

Target segment: As mentioned previously, the target segment will be mainly Sec B consumers or the

lower half of the pyramid. Also, people who occasionally drink coffee, and are reluctant to purchase

the bigger pack.

Slogan: “Behtereen Coffee, Behtereen Daam”, which means excellent coffee at excellent price. Also

notice that this slogan is in hindi compared to the previous adverts, thus again emphasizing on our

viewpoints on the target segment for the product.

Other information: The sachet also helped Nescafe in sales promotion by distributing samples of the

product or by giving it free with other products.

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TVC-4: After six advertisements they finally signed a celebrity to endorse their brand. Deepika

Padukone was signed to endorse the brand. The advertisement was released in three parts each

stage in continuation to keep up the curiosity quotient of the consumer.

Message: Nescafe started the “know your neighbours” campaign and signed Deepika Padunkone for

the advertisement. Unlike other advertisements which use big stars to just recommend the usage of

product plainly. This advertisement involved the celebrity very cleverly within the advertisement.

The ad was featured as a series of three ads each in continuation with a “to be continued …”

displayed at the end of the first two advertisements.

This was to generate curiosity amongst the consumers. The message was very plain and simple. The

ad shows a young teenager who is pondering over whether to approach a celebrity who has come to

live as his next door neighbor.

The first ad shows Deepika pondering over the same fact whether she should ask his next door

neighbor for a game of badminton or not.

The product is shown as being an “ice-breaker or a conversation-starter”, for the two characters. The

final ad shows the two characters talking when the second celebrity enters, Karan Johar.

Initially, the common teenager ‘Purab’ feels low on confidence as the two celebrities engage in

conversation. He feels outcast amongst the two big names.

Then enters our product, Nescafe. The character takes a sip while in the background a voice recites

the slogan “Switch on the best in you”. And the character regains his confidence.

This advertisement is on a different track in comparison to the previous advertisements. We believe

that this was just a celebrity endorsement with the celebrities cleverly weaved into a story. The

advertisement has a humorous touch to it.

Positioning: The advertisement positioned the product as “the drink that gives strength for any

challenge”. The coffee that instills confidence in you.

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Slogan: “Switch on the best in you”, daring one to take on challenges and discover one’s new self

References:

http://www.nestle.in/images/tvchtm/nescafe8a.htm

http://www.nestle.in/images/tvchtm/nescafe8.htm

http://www.nestle.in/images/tvchtm/nescafe_new.htm

PRINT MEDIA:

PRINT AD: Good Morning.

Analysis:

� Identification: The brand logo is clearly visible in the small pack of Nescafe.

� Description: Use of a splendid backdrop to show a chill & relaxing day with a person sitting

with his coffee mug and the Nescafe pack to show that he uses Nescafe product.

� Association:

o The print ads are used to show an urban lifestyle, where a person is relaxing and

chilling out with a cup of coffee.

o The person in the print ad seems to belong to the target audience age group to

resonate with the targeting strategy.

� Aesthetics:

o The splendid black-&-white background signifies a ‘calming’ & ‘soothing’ feeling.

o The bright red color of coffee cup/mug connotes ‘excitement’ & ‘stimulation’.

Objective: Inducing trial.

Positioning: The advertisement positioned the product as “the drink for every morning”, inducing

people to trust in a brand which many people trust.

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Slogan: “So many ways to say ‘Good Morning’ …one common factor”, saying that there are so many

people who believe to start their day with a coffee, that too Nescafe.

PRINT AD: Rain advertisements.

Analysis:

� Identification: The brand logo is clearly visible in the bottom left and the mug being passed

on.

� Description: The ad was released to make Nescafe a choice of drink during rainy season. The

print ad shows a girl drenched in the rain and enjoying it and a coffee cup being passed

between two people.

� Association:

o The print ad shows a girl drenched in the rain and enjoying it, and this signifies the

joy of drenching in rain and trying to associate that feeling with Nescafe.

o The person in the print ad seems to belong to the target audience age group to

resonate with the targeting strategy.

o The passing of the cup states that there are more than one person, i.e. Nescafe is

associated with friendship & hanging out with friends. Warmth of sharing with

friends is enhanced with a cup of Nescafe.

� Aesthetics:

o The bright red color connotes ‘excitement’ & ‘stimulation’.

o The umbrella above Nescafe in the left corner shows the vibe of the excitement &

joy.

o The use of two different pictures symbolizes the fun of rain and the warmth of

sharing.

Objective: Increasing consumption occasion.

Positioning: The advertisement positioned the product as “the drink for rainy days”, encouraging

people to increase the occasion of consumption of Nescafe.

Slogan: “Warm up to the Rains with Nescafe”, saying that the warmth of the rain is enhanced with

the Nescafe.

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PRINT AD: Deepika & Purab Advertisements.

Analysis:

The series of print ads show a chic-modern appeal, to give a feel of the urban lifestyle.

� Identification: The brand logo is clearly visible at the top corner along with the logo in the

coffee mug.

� Description: In most of the ads, the coffee cup/mug is shown tilted to give a look of

consumption. The aesthetics of the ad shows a relaxing day with a cup of coffee to induce

the time of consumption, any time that you feel like relaxing. Some of the ads in this series

show an urban lifestyle of the housing, clean room with technically placed items. The choice

of costumes used in the ads is modern and connects with the consumer segment.

� Association:

o The print ads are used to show a lifestyle that resonates with the urban areas.

o The use of Deepika & Purab is to fill the shoes of urban youngsters, who can connect

with the celebrities in terms of age.

o The depiction of the print ads symbolizes a situation of hanging out and relaxing.

� Aesthetics:

o The cool blue or light pink background signifies a ‘calming’ & ‘soothing’ feeling.

o The bright red color of coffee cup/mug connotes ‘excitement’ & ‘stimulation’.

o Symbolisms are used in the background to depict the urban way of living. Like in the

case of the first picture, the background has some picture scribed in white color

which signifies the modern lifestyle of running and living in an urban area. The

chalkish-picture is used to depict a ‘youth’ & ‘vibrant’ imagery.

Objective: Increasing brand recall.

Positioning: The advertisement positioned the product as “the drink that gives strength for any

challenge”, the coffee that gives confidence to face any challenges.

Slogan: “Switch on the best in you”, daring one to take on challenges and discover one’s new self

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OOH

Out-of-home: The Nescafe marketing team has also roped in the BEST (BrihanMumbai Electric

Supply & Transport), Mumbai for their advertising campaign. The bus service is famous in Mumbai

and carries around 45 lacs passengers daily. Although there is no data on the customer of the

services, there is a widespread believe that about 50% of the travelers fall into the target audience

category of Nescafe, i.e. young working between the age of 18-39 years. The amount of time spent

in the bus shed waiting for bus is significant and averages to around 17 minutes, which is much less

than the real waiting time [9]. The bus shed are a place of bonding and hanging out with friends and

that provides the connect with the brand identity of Nescafe.

Aesthetics: The OOH print ads are used to appeal to the rational of consumers. Get more of the

same pack.

Objective: The only rational objective that comes out of this campaign is the increase in

consumption. They are trying to push the consumption by selling bigger packs. At the same time, the

brand visibility to keep reminding the consumer about the product since it is a low-involvement

product.

Slogan: ‘One Nescafe, Many Coffees’, saying that you would get more number of drinks in this pack

of Nescafe.

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PACKAGING:

The main attributes of packaging described taking the packaging of Nescafe Classic into

consideration.

Information: A package must successfully deliver all the information about the product. This

includes the ingredients, the logo, the slogan etc. A bottle of Nescafe Classic contains

a. The brand promise: A message saying “100% coffee”,

which is the promise that Nescafe always delivers the

best and the purest form of coffee.

b. Ingredients: The compulsory norm for packaging of p

roducts is to display the ingredients used in the

product.

c. Brand Logo: To form a connect with the consumer over

the brand image that has been build over the years via

marketing.

Use convenience: Nescafe Classic comes in different forms,

namely glass packaging, air-sealed plastic wrappers, cartons

and sachets. All have different forms of use convenience while the glass jar packaging is used for

repeat use while keeping the coffee fresh for a long time, the air-tight sealed packets are

comparatively low on price and are used as a refill pack, or are purchased to be stored in an air tight

container. The sachets on the other hand are used for one-time use, i.e. use-and-throw.

Market and brand appeal: This mainly includes the look and feel of the package. The color of

Nescafe’s packets are normally of “Coffee” color, so the user can distinguish this product on a shelf

with a “Green” Bru. On the other hand the color of the package being similar to coffee makes it

more associable with the product itself. The brand appeal is established via promotion and

generating awareness, so if the advertisement claims a launch of a product, Nescafe Classic with a

richer aroma and better taste. The words “richer aroma” or “better taste” should feature on the

package. Sometimes Nescafe also uses a red and white combination which is basically the

combination used by its parent company “Nestle”

Containment and safety: The safety of the product as well as the consumer who uses the package is

a prime concern of the company. Nestle’s safety promises cannot be explained better than the

promise made by the company on the company’s website.

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POINT OF PURCHASE: Nescafe products are mainly sold in the following points. Nescafe Classic being

the most commonly used Nescafe coffee line extension.

a. Kirana Store : The most common and the most widespread form of sales point in India

b. Modern Retail: Present mostly in cities are increasingly becoming the most important points

of purchase. There are many factors that may influence the consumer’s decision at the last

moment of purchase. Most important of which are

a. Visibility: Whether the product is at eye-level or not

impacts the number of SKU’s sold

b. Accessibility: Where the SKU stack is located in

comparison to the entrance of the mall matters as most

of the SKUs sold today are impulsive purchases, so if the

SKU stack is located near the entrance and is visible, it

will impact the sales.

c. Vending Machines: Nescafe has its own vending machines

installed at various locations namely College canteens, Offices,

restaurants etc. This is a very efficient form of OOH marketing

too.

Other forms of Promotion: One very important and usually overlooked form of Nescafe’s

marketing is that wherever Nescafe’s vending machines are present they supply coffee in special

Nescafe paper cups only. Also Nescafe has special cups

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They also tried to rope in a very successful form of advertising which is also becoming increasingly

popular, social marketing.

They created a facebook page for involving the user, also known as Interactive marketing. The

statistics of the facebook page as on 16-11-2011 are: 1,080,645 like this 113,539 talking about this,

which is by-far one of the best Indian company facebook page. Engaging over2000 fans per comment speaks of the popularity and engagement index.

So in the end we see how the positioning has changed for Nescafe classic through time.

Reference

Year target positioning Slogan Objective

1998-

2005

urban youth morning drink for spirited

soul

100% pure First choice of drink for

morning coffee

2006 urban youth recharge drink Re 1 pack inducing trail in smaller cities

2007-

2009

urban youth beverages for any moment Coffee at its best increasing usage

2010 urban youth the drink that gives

strength for any challenges

Switch on the best in

you

increasing market share

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9. http://www.mesn.org/mumbai%20traffic%20stats.html

NESCAFE CAPPUCCINO

Nestle introduced one of its premium product Nescafe Cappuccino in early 2009 in India. The

product offers rich taste of the cappuccino coffee with a rich froth and a real cappuccino aroma.

Nestle did not bring out many advertisements for its cappuccino product. Cappuccino being a new

product, while Nestle kept TV commercials to a minimum, it put more emphasis on print and trials.

These are the three main channels it uses to market the product and we will analyze them in detail.

Channels used:

TVC, Print Media, Outdoor Trials

TVC 1: There is just one TV commercial that Nescafe Cappuccino launched in India. Following is the

link for the commercial:

http://www.nestle.in/images/tvchtm/cappuccino.htm

Message: The TV commercial produced for Nescafe Cappuccino shows a homely environment with a

girl sitting on a chair, besides a swimming pool and enjoying her cappuccino. In the TVC, Nescafe

Cappuccino has focused on the comfort of home while enjoying one’s coffee. In addition, the image

of froth building up in a coffee mug and the girl licking the forth from her lips has done well to bring

out the main objective of the communication, thick froth and rich coffee taste at home. The act of

licking thick coffee froth from the lips after having a sip of cappuccino has been done to make the

consumer salivate upon the sight of the TVC. This strategy is used as an indirect attack on the

psychology of the consumer which is used by many other FMCG manufacturers like Coca-Cola, etc.

Nescafe also added a new version of its trademark jingle, “Pa PaRaPa Pa Ra Ra”, to the TVC in order

to identify the product with the quality of original brand Nescafe. Another objective of the

communication is to induce trial among the existing Nescafe and other coffee consumers, as Nescafe

Cappuccino is a new product. The TVC also achieves the objective of inducing trial by displaying a

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sachet pack with clear markings of ‘Makes 1 cup’ indicating the availability of trial packs. To achieve

its objectives, Nescafe has kept its messages quite simple and clear, which is quite significant for the

adoption of a new product. The message, saying that one can now experience the thick frothy taste

and rich aroma of cappuccino right at home, leaves quite less to the imagination of a consumer. As

also mentioned above, Nestle has used only television, print and trials as the communication

channels to reach its consumers in an effective manner. Restricting the usage of communication

channels also shows emphasis on the nascent stage of the product and hence a reluctance to float a

full throttle campaign. Let us now discuss the communications in details.

Target Segment: The marketing campaign is targeted towards a segment which includes consumers

who like to enjoy their free time at their homes with a mild drink like coffee. The TVC also depicts a

female enjoying her cappuccino in a homely environment. A highly decorative and luxurious

ambience clearly indicates that the product is not directed to either rural or other SEC-C consumers.

There is a clear emphasis on female consumer as throughout the whole ad they have maintained a

flowery and comforting ambience. Thus they have once again tried to target the urban youth,

especially females.

Why specifically females?

a. Indian male youth are usually assigned a more outgoing personality as compared to Indian

girls. Therefore, there are more chances of them indulging in drinks which are served

outdoors, thus rendering the main objective of Nescafe Cappuccino useless in such cases.

b. Indian women are also considered to be main grocery shopper for the household, thus

making it more logical to target and influence the women of the households to buy their

product for their homes.

Positioning: “Deliciously frothy and pure cappuccino experience at home”, Nescafe Cappuccino tries

to sell the frothy and real coffee flavored cappuccino experience at the comfort of one’s home. The

comfort aspect of the positioning makes it different from competitors existing in the industry.

Print Ad 1: The print ad for Nescafe Cappuccino has again been kept simple and to the point. The ad

could have been used in newspapers, magazines and OOH.

Message: The ad shows a mug of cappuccino with a thick froth and

vapors of rich aroma of coffee in order to depict the quality of the

product. There is a very clear smiley made out of chocolate powder

on the froth depicting the smile it may bring to a consumer on

consumption. The message at the bottom clearly states the main

objective of the campaign, to ‘Bring home the café experience’. The

message also says what all does the new product has to offer to the

consumer, i.e. thick froth, rich aroma and great coffee taste. Nestle

has used the trademark blend of colors used by Nescafe Classic in its

ads and other communication, in order to maintain the relation with

the parent brand. This is another way to increase consumption by

attracting existing Nescafe consumers to try the new product. Again,

display of the sachet and the marking ‘Makes 1 cup’ distinctly at the

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bottom helps add to the trials of the product. A message indicating availability in select cities also

means that the product is in its nascent stages and hence might not be available in every city.

http://www.nestle.in/images/cuppucino_ad.jpg

Outdoor Trials: In the trials, Nescafe Cappuccino again maintains its simplicity of message and

provides an opportunity to consumers to try the new product on the go. Nescafe uses locations like

malls and markets to put up stalls for the Nescafe Cappuccino where it can attract potential

consumers looking for something new. The stalls carry the name of the brand, Nescafe, and the

product, Cappuccino distinctly at a comfortable level to be seen from a distance and amid a crowded

mall. The impressive stacking of the packs of the product on the counter of the stall is also an

effective way to grab the attention of a passing person. To emphasize the simplicity of the

preparation of the product, all stalls carry no other equipment than a hot water jug. This is an

impressive way to demonstrate the ease of preparing the rich cappuccino coffee from just the

ingredients of the pack. An advantage of trials is that one can not only see and listen to the ads, but

can also smell and taste the real product and make judgments on the spot. The smell of coffee being

sampled can be experienced in a wider area than just the small, thus attracting potential customers

to the stall, while the taste can help them reach a decision about the quality of the product.

PACKAGING

Nescafe Cappuccino is launched in two important packs, 250 gm. carton and

sachets. While the cartons are meant for high consumption households, the

sachets are meant to increase trials for the new product. Apart from

providing the basic information about the product like ingredients, logo of

the company, net content, etc. the packaging has also successfully conveyed

the brand promise attached with Nescafe. A single look at the color tones

used on the packaging reminds you about Nescafe which gives a

psychological advantage to Nescafe Cappuccino. An onlooker, specifically

existing Nescafe users, will immediately be assured of the quality of the

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product. The markings ‘Makes 1 cup’ on the sachets efficiently convey their usage as single serves

and hence attract trials amongst the consumer.

COMPETITION

Nescafe Cappuccino faces a tough competiti

offered in both hot and iced variants. Bru introduced its cappuccino products in 2007 and held

strong campaigns to promote them. Bru’s ‘Sip, Lick, Ummmhh…’ campaign was an instant hit in the

market with the launch of the product. However, Nescafe enjoys the advantage of positioning itself

as a simple-to-prepare formulation of the product which gives it an edge over Bru.

In its campaign Bru has targeted the young generation enjoying coffee at different day

occasions. Bru has tried to introduce a new way of drinking cappuccino by putting in words the

different actions a consumer will go through while drinking a rich cappuccino coffee.

specifically effective in its appeal to the young generation because of the whole youthful ambience

of the TVC.

Another kind of competitors that Nescafe faces are the coffee outlets like Café Coffee Day and

Barista. Although these outlets do not

a challenge to Nestle. The quality of coffee prepared at these outlets cannot be matched by the

instant mix prepared with just hot boiling water. In addition, the way these outlets have positioned

themselves as cool hangout places for the youth, they are offering much more than just comfort.

Needless to say, in this case, the target segment might differ in its behavioral aspects and the needs

that are served by these outlets.

NESTEA

Channels used:

OOH, TVC, Print Media, Radio

The advertising campaign was highly

road shows ensured many touch points populated by young adults, such as malls, colleges, high

traditional trade outlets and multiplexes.

‘Makes 1 cup’ on the sachets efficiently convey their usage as single serves

and hence attract trials amongst the consumer.

Nescafe Cappuccino faces a tough competition from Unilever’s Bru Cappuccino products which are



the launch of the product. However, Nescafe enjoys the advantage of positioning itself

prepare formulation of the product which gives it an edge over Bru.

has targeted the young generation enjoying coffee at different day


different actions a consumer will go through while drinking a rich cappuccino coffee.



Barista. Although these outlets do not market themselves in the conventional manner, they do pose





that are served by these outlets.

was highly focused and took the route of experiential sampling.

touch points populated by young adults, such as malls, colleges, high

traditional trade outlets and multiplexes.

‘Makes 1 cup’ on the sachets efficiently convey their usage as single serves

on from Unilever’s Bru Cappuccino products which are



the launch of the product. However, Nescafe enjoys the advantage of positioning itself

prepare formulation of the product which gives it an edge over Bru.

has targeted the young generation enjoying coffee at different day-to-day


different actions a consumer will go through while drinking a rich cappuccino coffee. The TVC is



market themselves in the conventional manner, they do pose





experiential sampling. Various

touch points populated by young adults, such as malls, colleges, high-end

23

TVC 1: This is the first of the two advertisements which has come out on television.

Message: The television ad clearly had the ‘fun’ and ‘youth’ touch to it, with words playing in the

back like ‘masti’ and also Lemon aspect with vitamin C was thrown in the same. It showcased young

pair who is chilling out with Nestea. From the visuals, clearly the target audience is youth who wants

to have good time. People aspiring to be have a good lifestyle.

The same advertisement and communication was continued for next couple of years. At the first

quarter of this year, Nestea again got aggressive on OOH and also came out with another

advertisement on the television which tries to increase the target segment apart from just young

college going crowd.

TVC 2: The second and the latest of the advertisement goes the animation way and show ‘mommy

kangaroo’.

Message: The recent ad features a Kangaroo mother who is not being able to gel well with her son’s

lifestyle and get along with his friend group. So by using the Nestea remix, she gets the appreciation

of her son. Clearly the focus has shifted from just talking to youngsters to appealing all those people

who want to be trendy and happening. Also the use of animation helps the advertisement to stand

out from the crowd. It is very appealing when it comes to target audiences since it connects

exceptionally well with the youth.

Target Segment: The 1st advertisement features youth with trendy get up and urban look style.

Clearly the focus is on the youngsters who are in sync with the recent trends and feel cool and

happening.

While the 2nd advertisement uses a Kangaroo to depict an urban mom who finds herself out of sync

of her child’s world. The visuals are of partying and rock music playing in background. Clearly a

setting to interest the urban youth and people with better lifestyle.

Positioning: “pyas ko pee ja, dhoop ko bhiga, masti me doob ja”, the ad very clearly depicts the

usage and the time of usage for the product.

Slogan: “Refreshingly Good”, puts the spot light on the ice tea claiming that it refreshes one’s mood

and playful visuals with water pipe goes well with the slogan.

Other Channels: Around the first quarter of this year, Nestea again

got aggressive on OOH and came out with advertisement at bus stand

during the start of the summer season.

Other References:

1. http://indiacoffee.org/indiacoffee.php?page=CoffeeData#exports

2. http://www.indiacoffee.org/userfiles/file/Coffee%20consumption%202008.pdf

3. http://business.mapsofindia.com/top-brands-india/top-coffee-brands-in-india.html

24

4. http://indiacoffee.org

5. http://www.euromonitor.com (Hot Drinks – India: Euromonitor International : Country

Market Insight - January 2011)

6. http://www.indiastat.com/demographics/7/population/217/projectedpopulationbasedon20

01census20012026/418450/stats.aspx

7. http://www.firstpost.com/living/indian-urban-youth-are-all-about-food-booze-and-dope-

113917.html

8. http://www.euromonitor.com (Coffee in India: Euromonitor International : Country Sector

Briefing January 2011)

nescafe _ group 5

Documents

bright red color

trade unit prices

bru roast

trade volume sales

print ad shows

fresh ground coffee

rich cappuccino coffee

kirana stores